What is market research?

Global consumer markets are becoming more competitive and more complicated all the time.

A clear understanding of people, markets and rival operators is essential for companies wishing to compete successfully.

That's where market research (sometimes simply called MR) enters the picture.

Market research systematically and objectively collects and analyses data about a particular group of consumers, market sector or region.

Commencing a project

All market research begins by defining objectives. Exactly what do you want to know? And why?

To meet such objectives, a market researcher has a wide variety of techniques and tools that can be deployed.

The first stage of a research project involves gathering data. For this the researcher will use qualitative research, quantitative research, or a mixture of both.

During the second stage, the data is gathered is interpreted and analysed.

Quantitative research

Quantitative research is all about statistics.

It might involve a group of people being asked identical questions.

The approach is highly organized and usually involves a large number of respondents.

Quantitative research can be conducted by telephone, face-to-face, via email, over the web, or through forms distributed in magazines.

Quantitative data can also be gathered from a variety of other sources.

Qualitative research

The researcher uses qualitative research to gain an understanding of the reasons behind people's behaviour.

Instead of structured questionnaires, qualitative research might take the form of discussion groups (focus groups).

During these sessions, a moderator will stimulate discussion designed to draw out the feelings and thoughts of the participants.

These discussions are often filmed and closely analysed and interpreted.

Analysis and recommendations

After gathering and organising the collected data, market researchers analyze and evaluate it.

They will draw conclusions from the data and develop a set of recommendations for action.

Market research is often used as the basis for decisions about the design, promotion, distribution and pricing of products and services.